SelfEmployed Persons

You are self-employed if you:
Carry on a trade or business as a sole proprietor,

Are an independent contractor,

Are a member of a partnership, or

Are in business for yourself in any other way.

Self-employment can include work in addition to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job. Y

You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1).

Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if:
1. Your net earnings from self-employment (excluding church employee income) were $400 or more, or
2. You had church employee income of $108.28 or more. (See Table 1-3.)

Use Schedule SE (Form 1040) to figure your self-employment tax. Self-employment tax is comparable to the social security and Medicare tax withheld from an employee’s wages. For more information about this tax, see Publication 334, Tax Guide for Small Business.